How do you respond to customers that are always bargaining the price?

I’m a freshman with international trading, there are some customers always bargaining price although my margins are very low. How should I reply them? (Other than talking about the good quality).

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5

Typically, I'll respond with something along the lines of "I don't dispute or react to another company's pricing as I don't know their operations and infrastructure...all I know is what it takes us to give you good value and a professional product like we've done for {INSERT YOUR VALUE HERE... the past 6 years, companies like a,b and c.... for example]." Then I'll continue with, " if there is a budget you need to stay within we can work around that and if needed reconfigure the scope of work."

I like the idea of reconfiguring work scope. It makes more sense and both parties are getting into a more meaningful contract while on clients budget and service quality.

4

Make a purchase progarm for them with backend rebate, the more the purchase volume, for example, per quarter, the more rebate (money award or additional goods ) they will get by the end of quarter.

Oleg,

Love your rebate idea, I've had good success with this approach as well.... Happy Holidays

4

I agree with James. Negotiation is the norm in many (maybe most) countries. It's an insult if you don't bargaon.

I assume you are in the U.S. So, if you have problems negotiating price, then do as James suggested. If you are OK negotiating, then DON'T post your prices, start with high prices, and be prepared to bargain.

I was in the Middle East and saw somebody selling something for 50 and the buyer wanted to pay 5. Negotiations back and forth and the end result was 20, not the mid-way point that you would think.

4

FIRE THEM! But you can only do this when you have created something that they don't believe is a "commodity." Price is the primary issue when the customer can't easily distinguish you from your competitors...you all look the same to them and they are assessing equal value. This is the definition of a commodity. When you are in a commodity market, the only way to win is with such items as price, delivery, terms, etc. None of these are distinguishing nor do they add any long term value.

Go back and do some soul searching on why your customers view you as a commodity. What are you lacking that would set you apart in their minds from your competitors. HINT: it most likely isn't the product or service you provide but is more closely aligned to the "experience" you deliver. The customer experience is the ultimate differentiator.

Now when you have created this level of differentiation based on your experience and the customer wants a lower price, you fire them and go look for those that value your exceptional experience. Don't be afraid to change the mix of customers. But you can't fire them unless you have the right experience in place. But when you do, you get a much better (and more profitable) business. Hope this helps...

4

Hi Lily

These customers are a fact of "sales" life.

Place the following little note in your correspondence, both offline and online and in a prominent place, if you operate from a physical space as well:

We continuously conduct research to make sure we are always offering you the best prices. In this way we save you the trouble of asking for discounts so you can concentrate on selecting the products that best match your budget.

Now when people ask you for a discount, just refer them to the notice or say it sweetly to them as you smile.

It works for our businesses Lily.

4

I feel your pain, Lily. I am a Real Estate Digital Marketer. I work within a profession that negotiates all day long, BUT they do not generally wish to negotiate their commission and I pretty much tell them the same goes for me. They are not your client nor are they my client if they cannot afford you. Simply release them and you make room for the right person to come through the door. Bottomline is they either do not value your service or they cannot afford you. Either scenario means they aren't someone you should work with. My opinion anyway. :)

4

I will go up in price... or I will start interestingly high for negotiation from the beginning. Since you know the customer, you may get a sense on his/her middle comfortable point. If you don't like doing this frequently, don't waste your time with that customer. If the customer keeps looking to work with you is because there is value in your service other than the price. Keep that in mind and let him/her know about that 'value'.

3

Ask them if they are there to bargain or do business, be firm and dont let others waste your time, if you hit me up on facebook we can talk about this more.

3

Today it has become nature of individual to bargain for lower price.One thing I would suggest is that keep your prices flexible.And secondly if you are not getting anything then do not make deal.Thirdly if the person is adamant then try to take money in advance.

3

One of the things I learned through time is to offer a cluster of value vs cost propositions. It'll be something like - a) 5 trades + 10 mins consultation = $A, b) 8 trades + 20 mins consult = $B, c) 10 trades only = $C, and so on.

When you do this your ability to engage and negotiate increases. Also, those that want to pay less will get the picture immediately. It'll also over time give you a clear idea about which ones are more popular. Don't, at any rate, leave your price points unless there is a bigger catch down the line.

All the best.

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